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Judge Approves $12.7 Billion Settlement Between FTX and CFTC
Summary: A major legal dispute has concluded with Judge P. Kevin Castel approving a $12.7 billion settlement between FTX, Alameda Research, and the Commodity Futures Trading Commission (CFTC). This settlement resolves the nearly four-year lawsuit filed by the CFTC against the defunct crypto exchange and its former CEO Sam Bankman-Fried. FTX and Alameda will pay $8.7 ...
A major legal dispute has concluded with Judge P. Kevin Castel approving a $12.7 billion settlement between FTX, Alameda Research, and the Commodity Futures Trading Commission (CFTC). This settlement resolves the nearly four-year lawsuit filed by the CFTC against the defunct crypto exchange and its former CEO Sam Bankman-Fried.
FTX and Alameda will pay $8.7 billion in restitution and $4 billion in disgorgement, managed through their bankruptcy proceedings. The CFTC, which initially sought a $52.2 billion claim, will receive nothing if FTX adheres to its reorganization plan.
The settlement also bans FTX and Alameda from engaging in commodity trading, including digital assets like bitcoin and ether. FTX and Alameda are required to cooperate with the CFTC in ongoing investigations.
FTX filed for bankruptcy in November 2022 and proposed a reorganization plan in May to compensate 98% of its creditors. Votes on the plan are due by August 16. Sam Bankman-Fried is currently serving a nearly 25-year prison sentence for fraud and related charges.
Tags: Alameda Research,CFTC,FTX
Link: Judge Approves $12.7 Billion Settlement Between FTX and CFTC [Copy]
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